PSource Structured Debt raises further 26 mln stg
LONDON, June 9 (Reuters) - PSource Structured Debt (PSSD.L), a fund taking advantage of tough fundraising conditions for small companies, has raised 26 million pounds ($51.4 million) in a placing and said it sees excellent investment opportunities. The fund, which invests in senior secured debt and warrants issued by North American growth-oriented micro-caps, could raise a further 5 to 15 million pounds in the current offer for subscription, said PSource Capital managing director Soondra Appavoo.
The fundraising comes as a number of listed alternative investment vehicles gather assets from investors, despite the credit crisis.
Last month hedge feeder fund BH Global (BHGG.L) said it had raised $1 billion from a placing with investors, double its initial target. Appavoo said current investment opportunities were excellent as banks cut back on lending to firms, and that further fundraisings were likely.
"We believe the current opportunity is extremely attractive ... We continue to provide funding for good quality growth businesses with strong asset backing. This is in direct contrast to banks," he told Reuters.
"There's more choice, good quality deals out there, and the cost of capital has risen ... The returns we're looking at are commensurately higher than earlier on in the credit cycle."
In the first four months of this year the fund returned 6.09 percent, while in the last five months of 2007 it rose 7.06 percent.
Appavoo also said an Asia distressed debt fund that the firm has marketed to some investors is likely to float later this year. (Editing by Will Waterman)
